Section 424D
This section is only a list of definitions for the mule-account offences, with no penalty of its own.
Sources checked 2026-09-17 to 2026-10-02
What it means
Section 424D is a definitions section. [f4] It was added to the Penal Code in 2024 to explain two terms used in section 424A, section 424B and section 424C.
A “financial institution” means a licensed bank, a licensed Islamic bank or an institution prescribed under the Development Financial Institutions Act 2002.
A “payment instrument” means a payment instrument prescribed under the Financial Services Act 2013 or the Islamic Financial Services Act 2013.
Section 424D creates no offence and carries no penalty of its own. The penalties sit in the three main sections.
How it relates to the main sections
The 424 series covers different roles in the mule account chain. Section 424A covers possessing or controlling another person’s account, with a fine of RM5,000 to RM50,000, or jail of 6 months to 5 years, or both [f1].
Section 424B covers giving control of your own account, at RM10,000 to RM100,000, or 1 to 7 years, or both [f2]. Section 424C, the most serious, covers transactions through an account without a lawful purpose, at RM10,000 to RM150,000, or 3 to 10 years, or both [f3]. Section 424D only supplies the definitions these three sections rely on.
Why you should confirm the exact charge
Because the 424 series covers more than one related offence, the section named in a charge or police notice matters a great deal. It sets the penalty range and how a defence is built.
If a document you received mentions 424D, check which of 424A, 424B or 424C is actually charged. Look at the charge sheet, ask the investigating officer, and confirm with a lawyer before you respond or give a detailed statement.
Sources
- Penal Code, Sections 424A, 424B, 424C (https://www.lawnet.com.my/penal-code)
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What is section 424D?
Section 424D is a definitions section added to the Penal Code in 2024 for sections 424A, 424B and 424C. It explains what "financial institution" and "payment instrument" mean in those sections. It creates no offence and carries no penalty.
How is 424D different from 424A, 424B and 424C?
Sections 424A, 424B and 424C each target a different role: holding another person's account, giving away your own, and making transactions without a lawful purpose. Section 424D only supplies the definitions those three sections use.
Was I charged under 424D or another section?
Check the charge sheet, or ask the investigating officer, then confirm with a lawyer. Because 424D only defines terms, the charge itself should name 424A, 424B or 424C. The section decides the penalty range and how a defence is built.
Related pages
If your situation is a little different, these pages cover the closest topics.
Need a Lawyer for Your Frozen Account Case?
Request Lawyer ContactFor people seeking legal representation. For general information, use our guides and tools.
Independent information resource, not a law firm. We do not provide legal advice. Where appropriate and with your consent, we can connect you with an independent lawyer. Availability and acceptance of a case are not guaranteed. How referral works